You are the CEO of Company A and you are using an industry leader (Leader Company) for benchmarking. Company A is much smaller than Company B in terms of total assets and total sales revenue. You should compare the:

net income to net sales ratio of Company A to net income to net sales ratio of Leader Company

Explanation:

Benchmarking is defined as the practice of measuring a business's services, sales, and operations to another company's that is considered to be one of the best in the industry.

The purpose of benchmarking is to find out the reason for superior performance of top companies and using the knowledge to improve performance of one's own company.

In the given scenario company A is much smaller than company B so the benchmarking method must consider difference in scale of operations.

The best way will be to use ratio of net income to net sales of each is the companies.

the answerr would be 1